Principles of Public and Private Infrastructure Delivery

Essential to anyone involved in the planning, design, construction, operation or finance of infrastructure assets, this innovative work puts project delivery, finance, and operation together in a practical new formulation of how both public and private ow

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THE KLUWER INTERNATIONAL SERIES IN INFRASTRUCTURE SYSTEMS: DELIVERY AND FINANCE Consulting Editor

John B. Miller, Ph.D. Massachusetts Institute of Technology Cambridge, USA

PRINCIPLES OF PUBLIC AND PRIVATE INFRASTRUCTURE DELIVERY

by

John B. Miller Massachusetts Institute of Technology, Cambridge

SPRINGER SCIENCE+BUSINESS MEDIA, LLC

Library of Congress Cataloging-in-Publication Data Miller, John B. Principles of public and private infrastructure delivery 1 by John B. Miller. p. cm. - (The Kluwer international series in infrastructure systems. Delivery and finance; ISDF 1O1) lncludes index. ISBN 978-1-4419-4859-5 ISBN 978-1-4757-6278-5 (eBook) DOI 10.1007/978-I-4757-6278-5 1. lnfrastructure (Economics)-United States-Finance. 1. Title. II. Series. HCIIO.C3 M53 2000 363'.0973---dc21 00-064313

Copyright© 2000 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 2000 Ali rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photo-copying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC.

Printed on acid-free paper.

CONTENTS CONTENTS ..................................................................................................................... V LIST OF FIGURES ................................ .................. .. .. ..... ...... .. ....... ....... ...... ........... ... .... XIII LIST OFT ABLES ............................................. ...................... ... .. ................... ..... ... ... ... . XVI LIST OF CORRELATIVE NOTES ................................................. .... ................ ....... ...... XVIII

FOREWORD BY THE AUTHOR •••••••.•••.•..••••••••••.••••••••••••••••.•••.•••••••••••••••••••••••••••• XIX PREFACE ................................................................................................................. XXIII NOTE TO THE READER ....................................................................................... XXV ACKNOWLEDGMENTS ..................................................................................... XXVII GLOSSARY OF TERMS ....................................................................................... XXIX CHAPTER 1 THE AMERICAN INFRASTRUCTURE HERITAGE: A DEPRECIATING GIFT ............................................................................................. ! CHAPTER SUMMARY ... ........... ..... ........................................................ .................... ........ ! INTRODUCTION ............................... .................. .......... .. ... ..... ..... .... .... ....... ...................... 2 THE HYPOTHESIS ....................................................... ............ ............. ... .. ....................... 5 GETTING A HANDLE ON THE AMERICAN INFRASTRUCTURE PORTFOLIO ............... .... .. 7 WHO CAN MOVE PUBLIC INFRASTRUCTURE DEVELOPMENT IN AMERICA ........ .......... 8 DRIVERS